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“Pre-Built House VS Building House”

The dream of having a home is shared by many people in Pakistan. But when it comes to realizing that ambition, people frequently find themselves torn between buying a pre-built home and starting from scratch. Considering your individual tastes and situation can help you determine which choice is best for you. Both solutions have benefits and drawbacks.

In order to assist you make a well-informed choice, we will explore the pros and cons of purchasing a pre-built home versus building a new one in Pakistan.

There are a few points that are significant while considering the points to see what could be the best option for you. If a person dreams of having their own house built according to their dream with no investment issue, then constructing one will be a suitable option. But considering the points that are to be mentioned needs to be pondered, in order to have a right direction.

If you are a busy person who does not have time to oversee the construction, you should go for a pre-built house although having overall knowledge of how to turn decision-making into no regrets then read the following information.


Purchase of a Pre-Built House: Pros and Cons

Convenience / Save time:

Buying a pre-built house is also more convenient because the house is already built and ready to move into. There is no need to wait for the house to be completed or engage builders and oversee construction, which can save time and money. Although keep in mind, purchasing a pre-built house that is based on old structuring can have its drawbacks.

Lower Purchasing Cost:  

Cost-wise, it’s less expensive than newly constructed homes because the price of a pre-built house includes the cost of land, materials, and labor, all of which are already incurred in the cost of building the house. However, before purchasing, it is critical to undertake a comprehensive inspection to ensure that you are aware of any forthcoming maintenance or repair expenditures (Tahir, 2020).

Established Communities:

One of the important social factors is having an established neighborhood. These nearby communities include facilities such as schools, stores, and parks that may not be available in freshly constructed areas which will increase the transportation cost.

Limited Options:

The restricted customization possibilities are one of the most significant downsides of acquiring a pre-built home in Pakistan. Pre-made homes are typically designed to a set of established designs that may not be suited for everyone. As a result, homeowners may not be able to receive the exact amenities or style they desire. As a result, homeowners may need to spend more money on renovations or alterations to make their properties more functional.

Quality Problems:

When it comes to pre-built homes in Pakistan, quality control can be a major issue. To save money, some builders may cut shortcuts or utilize low-quality materials, which might cause problems later on. This is especially true if you lack the knowledge to spot these concerns during the purchasing process.


The value of pre-built homes in Pakistan may decline with time, particularly if they are poorly constructed, located in a low-demand location, lack security, lack reliable water sources, or have a shortage of gas are the influencing factors. This can make it harder to sell the home or receive a decent return on your investment in the future (Anees, 2022).

Hidden Costs:

This is one of the major issues that people are not aware of when they purchase a pre-built house. For instance, they may be required to pay additional fees for maintenance, repairs, and termite existence may seriously harm the foundation of your house. However, when it comes to caring for your house, you should always consult a certified home inspector. They'll identify the issues and help you save some serious money before buying (Malik, 2021).


Building a New House: Pros and Cons

Unlimited Options

Building a new house provides for more personalization because the idea of your design and the investment you are planning to put in is all in your hands. The architect and builder can collaborate with you to create a design and budget that matches your needs. This means customizing your home with your preferences such as the number of bedrooms and bathrooms and the overall structuring of the house.

If you plan to take a risk by shifting to a prebuilt house that may be limiting your need for more rooms. According to (How Has Inadequate Housing in Pakistan Affected Citizens, 2020) it states that due to the congestion in urban areas of Pakistan, on average more than 3 people live in one room.

No Quality Problems:

Although this is a time-consuming process. If one is dedicated enough to oversee each and everything that goes into the dream project he or she has in mind. Then, having the knowledge of high-quality material usage and adjusting your estimated cost budget to the planned project can be a tricky task according to (5 Marla House Construction in Pakistan 2023: Costing and Important Details, 2021).

If we break down the construction costs. It is generally divided into two parts. One part goes into the grey structure costing which is considered to be consuming most of the construction cost. The grey structure costs support the foundations of the house, walls, roof, cement, plaster, water tanks, and tiles. And then there is a second construction cost which is called the finishing cost which includes wood items, paint, wallpapers, polishing, windows, grills, and fireplaces (Taimoor, 2022).

Having the right knowledge about the costs of materials and products that will be utilized is important. It is stated that overall products such as brick, sand, cement, steel, tiles, wood, glass, and plastic are mostly used during house construction but it’s a personal choice some may have a different plan. The products such as brick, steel, and glass are considered expensive items to be utilized in construction (A, 2022).

No Depreciation:

When you are in command of building a new house meaning everything that goes into your house construction under your supervision in the form of the latest grey structuring materials and finishing materials such as laminated wooden floors or different types of flooring tiles etc. have more demand. It can help increase the value and appeal of your home (U, 2020).

But it’s not the only factor that may influence the resale value. It’s also influenced by other factors as well such as having adequate storage capacity for garages and internal storage, access to a reliable water source, and gas supply (Anees, 2022).

Low-Cost Maintenance:

Lastly, the most advantageous factor is that you don’t have to pay for hidden costs that would be found in the pre-built house. This is because everything is newly installed under your supervision and may come under warranties since you are the first owner of the house. You will be relaxed for a few years and avoid repairing and maintenance nuisances (U, 2020).


Higher Construction Cost:

When it comes to constructing a new house, it can be more expensive than purchasing a pre-built house. This is because of the added costs associated with the construction process, such as land, labor, and materials. It is said that constructing a new home compared to old homes available for sale is up to 25% more expensive (U, 2020).

The cost of materials in 2023 changed drastically due to influencing factors such as dollar fluctuations and uncertainty and along with the country’s political factors. It is stated that the Labor community cost in Pakistan charges hardly between PKR 200-400 per square feet area. And in some regions of Pakistan labor is paid on daily wages and the daily charges are PKR 500-800 and sometimes 1000 PKR due to increasing inflation (Construction Material Rates 2023 Overview (All Material List), n.d.).

It depends on geographical location factor as well. Another influencing factor is that due to inflation. Companies are providing materials at different rates because different companies are manufacturing construction materials on different scales and techniques (Construction Material Rates 2023 Overview (All Material List), n.d.).

Note: According to (Construction Material Rates 2023 Overview (All Material List), n.d.) the latest construction material costs are mentioned above. These prices are the approximate values just to give you an idea. They may differ on the bases of a few factors. The factors include the country’s economic condition, brand, dollar fluctuation, and the city location you are purchasing from. Because the products you may be in search of can be in the other city which may add additional transportation costs. There could be other influencing factors as well.

Time-Consuming Process:

The construction of a new house may take months or even years, which means you may have to wait before you can move in. While waiting some people may rent a house for construction to end which is an additional cost that one has to bear (Barai, 2019).


There may be uncertainty with building a new house, especially considering Pakistan’s economic condition. It is important to have know-how about the condition of a country due to fluctuations. Because there are people who are constructing houses are facing problems related to unstable prices of construction materials.

Currently in 2023, “Pakistan’s gross domestic product (GDP) growth is projected to slow to 0.6% in FY2023 from 6% last fiscal year as the economy struggles to recover” according to (Pakistan Economic Recovery Rests on Resuming Robust Reforms — ADB, n.d.).

Steel prices have also risen significantly due to an increase in the global cost of steel scrap and the depreciation of the Pakistani rupee. According to the APCMA (All Pakistan Cement Manufacturers Association), one of the key reasons for the increase in cement pricing is due to the increase in prices of petroleum products and diesel nationally and internationally.

As a result of the currency devaluation, there has been a decrease in demand, as well as a decrease in people's overall purchasing power (A, 2022).



When it comes to purchasing a pre-built house or building a new house. There are consideration points mentioned above. The significance of the pros and cons of each point comes from a few factors that will help you make a firm decision. Factors like available budget, market condition, customization needs, time availability, convenience, quality problems, resale value, and hidden expenses. These factors should be able to help you balance between what you need and what you want and make the right decision.




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U. (2020, February 20). Buying a Newly Build House - Its Pros and Cons. UPN.

Anees, M. (2022, May 4). 5 Signs Your Property Has High Resale Value.

Malik, P. (2021, April 29). Building vs Buying a House - Which one is a better option? - About Pakistan. About Pakistan.

5 Marla House Construction in Pakistan 2023: Costing and Important Details. (2021, August 11). Wall Real Estate.

How has inadequate housing in Pakistan affected citizens? (2020, August 7). Macro Pakistani.

Taimoor, N. (2022, February 19). Cost to Construct 5 Marla,10 Marla, 1 Kanal House in Pakistan.

A. (2022, August 9). Construction Material Prices in Pakistan 2023 – Prices. pk.

Construction Material Rates 2023 Overview (All Material List). (n.d.). PriceLive.

Barai, F. (2019, April 27). A Comparison of House Buying Vs Constructing - Faizan Barai -. Faizan Barai.

Pakistan Economic Recovery Rests on Resuming Robust Reforms — ADB. (n.d.). Asian Development Bank.

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